The cryptocurrency market has officially entered a bullish cycle, with Bitcoin hitting a new all-time high (ATH) in March 2024.
BTC has increased by over 150% since last year due to the SEC’s approval of Bitcoin ETFs, greater institutional investor interest, and clearer regulations.
However, the impressive rise of AI-based tokens has eclipsed much of the advance in Bitcoin during this bull market.
Based on available data, the market capitalization of AI tokens is presently $41.5 billion, with ten times the rise of Bitcoin in the last year recorded by some of the top tokens.
What has caused the sudden popularity of AI (artificial intelligence) tokens in the cryptocurrency market? What cryptocurrency could emerge victorious in this bull market?
Examining the swift increase in AI token values
When ChatGPT released the GPT-4 module in early 2023, generative AI technology entered a new phase and AI tokens began to gain popularity.
As major industry heavyweights like Microsoft and Google launched their own AI programs and growth plans, traders’ interest in these tokens gradually increased during 2023.
With these industry endeavors, it is becoming more and more clear that artificial intelligence (AI) is the fundamental component of all future technologies.
Thus, it makes sense that demand in these currencies increased steadily throughout the course of the year as the crypto market is always responsive to noteworthy technological breakthroughs.
However, in January 2024, trading interest in AI tokens experienced parabolic increase due to a number of causes.
The introduction of OpenAI’s text-to-video model Sora demonstrated the genuinely cutting-edge potential of AI.
Anthropic, OpenAI’s competitor, raised around $3 billion in capital during this same period.
As a result of these developments, demand in AI tokens increased significantly, and trading volume increased by over 400% on many platforms.
Additionally, in February 2024, Nvidia released its fourth-quarter earnings results, which surpassed Wall Street’s forecasts in terms of revenue and earnings per share.
The tech industry as a whole, and especially the AI and machine learning industries, can be gauged by Nvidia’s performance.
AI-related tokens in the cryptocurrency market stand to gain directly from the company’s good success, which may indicate robust health and innovation in these areas.
The fact that Vitalik Buterin endorsed AI as the future of blockchain security was another important element.
In order to address the cybersecurity issue facing the cryptocurrency sector, the co-founder of Ethereum proposed using AI technology to enhance code audits and minimize defects in blockchain projects.
Together, these elements caused these tokens to perform better than other cryptocurrencies like Ethereum and Bitcoin.
2024 AI tokens to keep a careful eye on
With certain tokens surpassing market expectations, there were clear winners in this AI bull run.
Without a doubt, Worldcoin (WLD) has led this AI token surge, rising by around 790% in just seven months since its September 2023 launch.
As a project of CEO of OpenAI Sam Altman, Worldcoin profited greatly from the excitement around Sora. Early in March 2024, the token hit its ATH.
Regulators from across the globe have, however, sharply criticized the token. Scannng users’ eyes and exchanging tokens for biometric data is a crucial component of the idea.
This has sparked privacy concerns in a number of nations, including Spain and Portugal.
The fact that user interest in WLD has not changed in spite of the heightened scrutiny suggests that the token is resilient to regulatory difficulties.
Render (RNDR), which has surged by more than 800% in a year, is another possible AI token to keep an eye on.
A proposal to create 3D datasets for next-generation AI applications is the most recent of the project’s big announcements in recent weeks.
Among the more intriguing projects in the AI field to follow are SingularityNet, Fetch.ai, and Ocean Protocol. Since January 2024, the values of each of these tokens have increased by almost 100% on their own.
According to recent rumors, there may be talks for a merger of the three currencies with the aim of highlighting joint efforts towards creating decentralized AI protocols on blockchain technology.
These actions may help ensure that those tokens maintain their strong performance during the bull market. AI tokens are clearly the newest craze in the cryptocurrency space, and for good reason.
The industry is entering a new phase of scalability, security, and interoperability thanks to these efforts, which will be advantageous to all cryptocurrency platforms and projects in general.
It’s crucial to be aware of the hazards associated with the market’s natural volatility, though.
Just as interest in AI tokens has grown exponentially in recent months, choices made by regulators or other outside forces may cause it to fall.
Therefore, before engaging in such activities, it’s crucial to maintain vigilance and assess your risk tolerance.
